Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
Companies in the renewables sector are finding it difficult at the moment and there are a number of issues
- Profit margins
- Capital intensive
- Foreign price wars
- Difficult market conditions resulting in low pricing
- Unusual working shift patterns
- Tough competition from the UK and overseas
- Quality versus price
- Tier one or two suppliers exerting price pressure downwards
- Lack of skilled engineers
- Factories not working to capacity
- Loss of subsidies
- Political climate and public opinion
In February 2016, the government cut solar subsidies from 12,47p per kilowatt hour to 4.39p/kWh. This meant that homeowners, who are paid for every unit of electricity their domestic panels generate through a feed-in tariff, had far fewer incentives to opt for a solar installation.
This move came after the government highlighted concerns that the £7.6bn budget for renewables would be drastically overspent. It was argued that solar and onshore wind projects should be largely self-sufficient.Since these changes were made, several renewable energy providers have fallen into administration or liquidation, as they often relied on these subsidised rates to generate business.
If your business is under threat then call us and we can help.
As turnaround practitioners, our specialists can help tackle these issues with you to get your renewables business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improved financial reporting, Time to Pay deals, CVAs and pre-pack administrations.
Call us on 0800 9700 539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation.